The United Kingdom is taking a bold step toward curbing the dominance of Big Tech, with its competition watchdog proposing measures that could compel Google to change how it ranks businesses in its search results. The Competition and Markets Authority (CMA) announced on Tuesday that it may designate Google owned by Alphabet with “strategic market status” (SMS), a classification that grants the regulator enhanced oversight over the tech giant’s UK operations.
If finalized, this would mark the first use of the CMA’s new powers under the Digital Markets, Competition and Consumers Bill, aimed at fostering fairer digital markets. The strategic designation would enable the CMA to intervene directly in how Google displays and prioritizes results for local businesses and services, ensuring competitors are not unfairly disadvantaged.
The move represents a more focused and targeted regulatory approach compared to the broader digital market laws enacted by the European Union. While the EU’s Digital Markets Act targets multiple tech giants simultaneously with sweeping rules, the UK aims to tailor its interventions to the specific behavior and market impact of each firm.
According to the CMA, its concerns stem from evidence suggesting Google may be prioritizing its own services in search results over those of rivals, potentially stifling innovation and harming consumers and small businesses alike. The regulator emphasized that the goal is not to penalize success, but to create a level playing field where businesses can fairly compete and consumers have better choices.
A spokesperson for Google expressed concern about the potential designation, warning that excessive regulation could hinder improvements to search quality and user experience. However, the CMA maintains that increased oversight is essential to unlock greater innovation and economic growth in the UK’s digital economy.
The CMA is now seeking industry input on its proposal before making a final decision. Should Google receive the SMS designation, it will be required to adhere to a set of tailored conduct rules. This regulatory shift could reshape the way digital markets operate in the UK and serve as a model for other countries grappling with the challenges of tech monopoly power.
